Twin Butte Energy Ltd TBTEF

RE: I want Rock energy and PXL to merge

[bshort92]

RE and PXL.V are both interesting undervalued companies. RE is operating relatively debt free (just beginning to tap a $40 million credit line) after the sale of their Elmworth NG property. They are focusing on building a solid heavy oil core at Mantario in the southern portion of the Lloydminster corridor. They are trading at about a dollar a share, guiding production to 2600-2800 boe/d by year end. Reserves are 8.3 mmboe with $100 million of tax pools. They also possess app. 85,000 undeveloped acres. Undeveloped acreage in the  Lloydminster corridor is  becoming a hotter commodity witness recent land sale prices that Jim Saunders touched on in his Peters presentation. PXL.V operates near Lloydminster,Edam, Tangleflags and at Manitou Lake plus an NG property at Medicine Hat. They have gotten their arms around salt water disposal issues and thus their netbacks are back to being close to $30 per boe after a challenging 2011 that saw netbacks slide into the high teens. PXL.V is perfecting technology called high volume lift that basically encompasses taking a cluster of say four wells and enhancing the recovery of each well improving the recycle ratio and the daily production of the well (s). They possess about 52 K outstanding acrerage. Like RE they are also guiding to a year end production exit of 2600-2800 boe/d. They have built up 3.9 mmboe reserves along with $77 million in tax pools. Merging two publically traded firms is not as easy as merging a private concern as what TBE did in the Swimming, Avalalon and soon the Waseca purchases. Clearly RE and PXL.V would benefit from some strategic options that improve the value of their shares.